Thursday, March 5, 2009

"Nature Doesn't Do Bailouts" - Paul Dickinson, CDP

Notes from CDP Supply Chain Launch in NYC, March 5

I just returned from the CDP Supply Chain launch in NYC. Congrats to CDP and PWC for a very successful event and important initiative.

Highlights
- more companies participated this year (34 large companies sent CDP supply chain surveys to 2300 suppliers, and 600 completed). Survey is most about climate efforts and organizational footprint (not product level)
- Good case studies from Pepsi, their supplier, IBM (internal), and Juniper Networks
- Paul Dickinson, CEO of CDP, had some good quotes, including "Nature Doesn't Do Bailouts", so time is now to act
- Another said "satisfying Walmart IS compliance"
- LCA is fraught with assumptions but can be educational, especially if done at high level and shared with senior executives and supply chain partners.

Observations
- Company differentiation with green products, green "features", or green "capabilities" is powerful in recession. CDP and projects teams need to emphasize this more, than the softer risks of regulation, supply chain disruption, and cost spikes.
- the "goal" or success metric the CDP Supply Chain initiative is still ellusive, but will probably come over time. IBM suggested a goal of having a % of top suppliers report scope 1 and 2, and that these suppliers demonstrate "progress over 3 years" toward reduction. Work remains.

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